Human Resource Management, 15th Edition Solution Manual

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S2/8TI21 MA18A/Joseph J. MartocchioHuman Resource ManagementFifteenth EditionHuman Resource ManagementPrepared bySusan C. SchanneEastern Michigan University

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iiiTABLE OF CONTENTSTopicPageCHAPTER 1: HUMAN RESOURCE MANAGEMENT: AN OVERVIEWChapter Objectives...........................................................................................................................1Key Terms........................................................................................................................................1Lecture Outline2Answers to Chapter 1 Questions for Review ................................................................................10Discussion of Chapter 1 Incidents.................................................................................................15CHAPTER 2: BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY,AND SUSTAINABILITYChapter Objectives.........................................................................................................................18Key Terms......................................................................................................................................18Lecture Outline18Answers to Chapter 2 Questions for Review ................................................................................22Discussion of Chapter 2 Incidents.................................................................................................25CHAPTER 3: EQUAL EMPLOYMENT OPPORTUNITY, AFFIRMATIVEACTION, AND WORKFORCE DIVERSITYChapter Objectives.........................................................................................................................28Key Terms......................................................................................................................................28Lecture Outline29Answers to Chapter 3 Questions for Review ................................................................................37Discussion of Chapter 3 Incidents.................................................................................................43CHAPTER 4: STRATEGIC PLANNING, HUMAN RESOURCE PLANNING,AND JOB ANALYSISChapter Objectives.........................................................................................................................47Key Terms......................................................................................................................................47Lecture Outline48Answers to Chapter 4 Questions for Review ................................................................................54Discussion of Chapter 4 Incidents.................................................................................................59CHAPTER 5: RECRUITMENTChapter Objectives.........................................................................................................................62Key Terms......................................................................................................................................62Lecture Outline63Answers to Chapter 5 Questions for Review ................................................................................67Discussion of Chapter 5 Incidents.................................................................................................71CHAPTER 6: SELECTIONChapter Objectives.........................................................................................................................75Key Terms......................................................................................................................................75

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ivLecture Outline77Answers to Chapter 6 Questions for Review ................................................................................85Discussion of Chapter 6 Incidents.................................................................................................91CHAPTER 7: PERFORMANCE MANAGEMENT AND APPRAISALChapter Objectives.........................................................................................................................94Key Terms......................................................................................................................................94Lecture Outline95Answers to Chapter 7 Questions for Review ..............................................................................101Discussion of Chapter 7 Incidents...............................................................................................106CHAPTER 8:TRAINING AND DEVELOPMENTChapter Objectives.......................................................................................................................110Key Terms....................................................................................................................................110Lecture Outline113Answers to Chapter 8 Questions for Review ..............................................................................121Discussion of Chapter 8 Incidents...............................................................................................126CHAPTER 9: DIRECT FINANCIAL COMPENSATION (MONETARYCOMPENSATION)Chapter Objectives.......................................................................................................................130Key Terms....................................................................................................................................130Lecture Outline133Answers to Chapter 9 Questions for Review ..............................................................................139Discussion of Chapter 9 Incidents...............................................................................................144CHAPTER 10: INDIRECT FINANCIAL COMPENSATION (EMPLOYEEBENEFITS)Chapter Objectives.......................................................................................................................148Key Terms....................................................................................................................................148Lecture Outline150Answers to Chapter 10 Questions for Review ............................................................................155Discussion of Chapter 10 Incidents.............................................................................................160CHAPTER 11: LABOR UNIONS AND COLLECTIVE BARGAININGChapter Objectives.......................................................................................................................164Key Terms....................................................................................................................................164Lecture Outline166Answers to Chapter 11 Questions for Review ............................................................................175Discussion of Chapter 11 Incidents.............................................................................................181CHAPTER 12: INTERNAL EMPLOYEE RELATIONSChapter Objectives.......................................................................................................................185Key Terms....................................................................................................................................185Lecture Outline186Answers to Chapter 12 Questions for Review ...................................................….....................190

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vDiscussion of Chapter 12 Incidents.............................................................................................194CHAPTER 13: EMPLOYEE SAFETY, HEALTH, AND WELLNESSChapter Objectives.......................................................................................................................198Key Terms....................................................................................................................................198Lecture Outline199Answers to Chapter 13 Questions for Review ............................................................................203Discussion of Chapter 13 Incidents.............................................................................................206CHAPTER 14: GLOBAL HUMAN RESOURCE MANAGEMENTChapter Objectives.......................................................................................................................211Key Terms....................................................................................................................................211Lecture Outline212Answers to Chapter 14 Questions for Review ............................................................................216Discussion of Chapter 14 Incidents.............................................................................................219

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viTEACHING RESOURCESChapter ObjectivesChapter objectives are provided at the beginning of each chapter.Key TermsAll key terms used in each chapter are defined.Lecture OutlineA comprehensive lecture outline is prepared for each chapter.Answers to Chapter Questions for ReviewAnswers to each of the review questions at the end of the chapter are provided.Discussion of Chapter IncidentsPossible answers to each of the HRM Incidents presented in the text are provided. Becausethere are few instances in human resource management where there is a perfectrightorwrongway to accomplish a task, please remember that responses provide only a guide to thediscussion of the cases. Instructors may wish to elaborate further in their discussion.

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viiSample SyllabusHUMAN RESOURCE MANAGEMENTSpring 20XXCourse Description:Human resource management topics include staffing, human resourcedevelopment, compensation, health and safety, employee and labor relations, and humanresource research.NOTE:IF A STUDENT DOES NOT HAVE THE REQUIRED PREREQUISITES,THEY MUST DROP THE COURSE OR THEY MAY BE DROPPED BY THEINSTRUCTOR.Prerequisites:Junior standingINSTRUCTOR:ProfessorOFFICE:BBC 218OFFICE HOURS:Tuesday - 7:00–9:00Thursday - 9:15–11:15Wednesday - 2:55–5:25PHONE:555-5555VIRTUAL OFFICE HOURS—Professor@internet.comMonday–7:00–10:00 a.m.Wednesday–7:00–9:00 a.m.I will respond quickly to your inquiries during these times. You will find that it is a veryeffective means of communicating with me. I also check my e-mail frequently and willrespond to you as soon as possible.TEXT:Human Resource Management,15thedition, by Joseph J. MartocchioPLEASE NOTE: Any student with a disability is encouraged to contact the Office ofServices for Students with Disabilities in Drew Hall, Room 200 (555) 555-5555. It iseach student's responsibility to register with the Office of Services for Students withDisabilities when requesting a reasonable accommodation.COURSE OBJECTIVES1.An insight into the evolving role of strategic HRM in today’s organizations, thestrategic role of HR functions, and the impact of technology and globalcompetition.2.An awareness of the importance of business ethics and corporate socialresponsibility in HRM.3.An insight into how workforce diversity provides an opportunity for management.4.Examine the legislation and regulations affecting staffing.

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viii5.Know the significant federal court decisions affecting staffing.6.Understand the Uniform Guidelines, Adverse Impact, and Affirmative ActionPrograms that affect staffing.7.Understand the ethical, regulatory, environmental, social, political, andtechnological issues of staffing.8.An understanding of job analysis, strategic planning, human resource planning,recruitment (including Internet recruiting), and selection.9.An awareness of the importance of training and developing for employees at alllevels.10.An understanding of performance appraisal and its role in performancemanagement.11.An appreciation of how compensation and benefits programs are formulated andadministered.12.An understanding of safety and health factors as they affect the firm’sprofitability.13.An opportunity to understand employee and labor relations.14.An appreciation of the global dimension of HRM.STUDENT EVALUATIONFive objective exams, in addition to a comprehensive final exam, will be given. The finalwill count the equivalent of two tests.Test questions may come from your text, mylecture, or a combination.All tests are weighted 100 points each.The following grading scale pertains: 90 - 100 = A; 80 - 89 = B; 70 - 79 = C; 60 - 69 = D;below 60 = F. I curve each test. Therefore, you must have a 90-grade average for an “A.”89.99 is not an “A.”Your gradefor each test will be available to you in “Student Tools,” “Check Your Grade”in Blackboard. I will also return the test the next class period.TENTATIVE SCHEDULEWeekTopicReading Assignment1Course Introduction2Human Resource Management: AnOverviewChapter 13Business Ethics, Corporate SocialResponsibility, And SustainabilityExamChapter 24Equal Employment Opportunity, AffirmativeChapter 3

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ixAction, and Workforce Diversity5Strategic Planning, Human ResourcePlanning, and Job AnalysisChapter 46RecruitmentExamChapter 57SelectionChapter 68Performance Management and AppraisalChapter 79Training and DevelopmentExamChapter 810Direct Financial Compensation (MonetaryCompensation)Chapter 911Indirect Financial Compensation (EmployeeBenefits)Chapter 1012Labor Unions and Collective BargainingExamChapter 1113Internal Employee RelationsChapter 1214Employee Safety, Health, and WellnessChapter 1315Global Human Resource ManagementExamChapter 14FinalsWeekFinal Exam-Comprehensive

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Human ResourceManagementFifteenth EditionJoseph J. MartocchioNew York, NYInstructor's Resource Manual(Download only) for HumanResource ManagementSusan Schanne

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1CHAPTER 1HUMAN RESOURCE MANAGEMENT: AN OVERVIEWLEARNING OBJECTIVES1.1Define human resource management (HRM) and the importance of studying it1.2Describe who performs HRM1.3Explain how the HRM function serves as a strategic business partner and theelements of the dynamic HRM environment1.4Discuss the role of HRM in building corporate culture and employer branding1.5Summarize HRM issues for small businesses1.6Identify ways that country culture influences global business1.7Explore essential skills for developing your career in HR or any other career pathKEY TERMSHuman resource management (HRM):The utilization of individuals to achieveorganizational objectives.Staffing:Process through which an organization ensures that it always has the propernumber of employees with the appropriate skills in the right jobs, at the right time, toachieve organizational objectives.Performance management (PM):Goal-oriented process directed toward ensuring thatorganizational processes are in place to maximize the productivity of employees, teams,and ultimately, the organization.Human resource development (HRD):Major HRM function consisting not only oftraining and development, but also of individual career planning and developmentactivities, organization development, and performance management and appraisal.Direct financial compensation (monetary compensation):Pay that a person receives inthe form of wages, salary, commissions, and bonuses.Indirect financial compensation (benefits):All financial rewards that are not includedin direct financial compensation.Nonfinancial compensation:Satisfaction that person receives from the job itself or fromthe psychological and/or physical environment in which the person works.Safety:Protection of employees from injuries caused by work-related accidents.Health:Employees’ freedom from physical or emotional illness.Human resource management professional:An individual who normally acts in anadvisory or staff capacity,working with other managers to help them address humanresource matters.Line managers:Individuals directly involved in accomplishing the primary purpose ofthe organization.

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2HR outsourcing (HRO):Process of hiring external HR professionals to do the HR workthat was previously done internally.Shared service center (SSC):A center that takes routine, transaction-based activitiesdispersed throughout the organization and consolidates them in one place.Professional employer organization (PEO):A company that leases employees to otherbusinesses.Executive:Top-level manager who reports directly to a corporation’s chief executiveofficer or to the head of a major division.Generalist:Person who may be an executive and performs tasks in a variety of HR-related areas.Specialist:Individual who may be an HR executive, a human resource manager, or anonmanager, and who is typically concerned with only one of the six functional areas ofhuman resource management.Profession:Vocation characterized by the existence of a common body of knowledgeand a procedure for certifying members.Human capital:As defined by economists, human capital refers to sets of collectiveskills, knowledge, and ability that employees can apply to create economic value for theiremployers.Union:Comprised of employees who have joined together for the purpose of dealingwith their employer.Shareholders:Owners of a corporation.Human resource information system (HRIS):Any organized approach for obtainingrelevant and timely information on which to base human resource decisions.Corporate culture:System of shared values, beliefs, and habits within an organizationthat interacts with the formal structure to produce behavioral norms.Employer branding:Firm’s corporate image or culturefocused on attracting the type ofemployees the firm is seeking.Country’s culture:Set of values, symbols, beliefs, language, and norms that guidehuman behavior within the country.LECTURE OUTLINEHUMANRESOURCEMANAGEMENTHuman resource management (HRM) can be defined as the optimal utilization ofindividuals to achieve organizational objectives.HUMAN RESOURCEMANAGEMENT FUNCTIONSSix functional areas are associated with effective human resource management: staffing,human resource development, performance management, compensation, safety andhealth, and employee and labor relations.

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3●STAFFING—Process through which an organization ensures that it always hasthe proper number of employees with the appropriate skills in the right jobs, at theright time, to achieve organizational objectives.●Job analysis: Systematic process of determining the skills, duties, andknowledge required for performing specific jobs in an organization.●Human resource planning: Systematic process of matching the internaland external supply of people with job openings anticipated in theorganization over a specified period of time.●Recruitment: Process of attracting qualified individuals and encouragingthem to apply for work with the organization.●Selection: Process through which the organization chooses, from a groupof applicants, those individuals best suited both for open positions and thecompany.●PERFORMANCE MANAGEMENT—A goal-oriented activity to ensureorganizational processes are in place to maximize the productivity of employees,teams, and ultimately, the organization.●Performance appraisal: A formal system to review and evaluateindividual or team performance.●HUMAN RESOURCE DEVELOPMENT—A major HRM function consistingnot only of training and development, but also of career planning anddevelopment activities, organization development, performance management, andappraisal.●Training: Activities designed to provide learners with the knowledge andskills needed for their present jobs.●Organization development (OD): A planned and systematic attempt tochange the organization to a more behavioral environment.●Career planning: Ongoing process whereby an individual sets careergoals and identifies the means to achieve them.●Career development: Formal approach used by the organization to ensurethat people with the proper qualifications and experiences are availablewhen needed.

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4●COMPENSATION—All rewards that individuals receive as a result of theiremployment.●Direct Financial Compensation:Pay that a person receives in the formof wages, salaries, bonuses, and commissions.●Indirect Financial Compensation (Benefits): All financial rewards thatare not included in direct compensation such as paid vacations, sick leave,holidays, and medical insurance.●Nonfinancial Compensation: Satisfaction that a person receives from thejob itself or from the psychological and/or physical environment in whichthe person works.●EMPLOYEE AND LABOR RELATIONS—Businesses are required by law torecognize a union and bargain with it in good faith if the firm’s employees wantthe union to represent them. Internal employee relations comprise the humanresource management activities associated with the movement of employeeswithin the organization such as promotions, demotion, termination, andresignation.●SAFETY AND HEALTH—Employees who work in a safe environment andenjoy good health are more likely to be productive and yield long-term benefits tothe organization.●Safety: Activities involved in protecting employees from injuries causedby work-related accidents.●Health: Activities involved in securing the employees’ freedom fromillness and their general physical and mental well-being.●HUMAN RESOURCE DATA ANALYTICS—Pervades all HRM functionalareas and the researcher’s laboratory is the entire work environment. Humanresource research is key to developing the most productive and satisfiedworkforce possible. Data analytics go a long way towards establishing the HRMfunction as a strategic business partner.●INTERRELATIONSHIPS OF HRM FUNCTIONS—All HRM functionalareas are highly interrelated.WHOPERFORMSTHEHUMANRESOURCEMANAGEMENTACTIVITIES?The person or units who perform human resource management tasks has changeddramatically in recent years.

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5●HUMAN RESOURCE MANAGEMENT PROFESSIONAL—An individualwho normally acts in an advisory (or staff) capacity when working with other(line) managers regarding human resource matters.●LINE MANAGERS—Individuals directly involved in accomplishing theprimary purpose of the organization. As the traditional work of HR managersdiminishes, line managers are stepping up and performing some duties typicallydone by human resource professionals.●HR OUTSOURCING—Process of hiring an external provider to do the workthat was previously done internally.●Discrete services outsourcing:Involves one element of a businessprocess or a single set of high-volume repetitive functions such asbenefits.●Business process outsourcing (BPO):The transfer of the majority of HRservices to a third party.●HR SHARED SERVICE CENTERS—Take routine, transaction-basedactivities that are dispersed throughout the organization and consolidate them inone place.●PROFESSIONALEMPLOYERORGANIZATION(PEO)—Company thatleases employees to other businesses. When a decision is made to use aprofessional employer organization, the company releases its employees whoare then hired by the PEO.HUMANRESOURCEMANAGEMENTPROFESSIONThere are various designations in the human resource management profession.●EXECUTIVE—A top-level manager who reports directly to a corporation’s chiefexecutive officer or to the head of a major division is called an executive.●GENERALIST—A person who may be an executive and performs tasks in avariety of HR-related areas is called a Generalist.●SPECIALIST—An individual who may be an HR executive, a human resourcemanager, or a non-manager, and who is typically concerned with only one of thefive functional areas of human resource management.

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6●PROFESSION:Vocation characterized by the existence of a common body ofknowledge and a procedure for certifying members. Professions haverepresentative organizations. In HR these include the Society for HumanResource Management, the Human Resource Certification Institute, theAssociation for Talent Development, and WorldatWork. Opportunities andcompensation in this profession are growing.HUMAN RESOURCES AS A STRATEGIC BUSINESS PARTNER IN ADYNAMIC ENVIRONMENTToday’s HR professional must be a strategic business partner with upper management.HR must thoroughly understand all aspects of the businesses they support. Working as astrategic partner requires a deeper and broader understanding of business issues. The HRprofessional must inform executives of the key role employees play in achievingorganizational goals. Doing so requires HR professionals to understand the role of capitalin value creation.●CAPITAL:The factors that enable companies to generate income, increasecompany stock prices, economic value, strong brand identity, and reputation.●HUMAN CAPITAL:As defined by economists, refers to sets of collective skills,knowledge, and ability that employees can apply to create economic value fortheir employers.DYNAMICHUMANRESOURCEMANAGEMENTENVIRONMENTMany interrelated factors affect the five HRM functions. Factors outside anorganization’s boundaries that affect a firm’s human resources make up theexternalenvironment.●LEGAL CONSIDERATIONS—Federal, state, and local legislation, and themany court decisions interpreting this legislation, in addition to many presidentialexecutive orders, have had a major impact on human resource management.●LABOR MARKET—Potential employees located within the geographic areafrom which employees are normally recruited.●SOCIETY—Society may also exert pressure on human resource management.●Ethics: Discipline dealing with what is good and bad, or right and wrong,or with moral duty and obligation.●Corporate social responsibility: Implied, enforced, or felt obligation ofmanagers, acting in their official capacity, to serve or protect the interestsof groups other than themselves.

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